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Tuesday May 21, 2024

BRICS: India, Nigeria ditch US dollar, will trade in local currency

Is fall of dollar nearing? Brazil, Russia, India, China and South Africa ditch US dollar

By Web Desk
May 14, 2024
Doubts in US dollar begin to seep in as new currency comes to the rescue. — Business Forward/File
Doubts in US dollar begin to seep in as new currency comes to the rescue. — Business Forward/File 

In a bid to counter the United States dollar's supremacy, BRICS member countries India and Nigeria have agreed to trade in their local currencies and not the greenback anymore, Watcher Guru reported.

The two countries have officially signed a trade agreement where it is stated that the majority of the payments will be made in local currency.

The BRICS, comprising Brazil, Russia, India, China, and South Africa, is an intergovernmental organisation that was made to establish deeper ties between member nations and cooperate on economic expansions, such as trade. It was set to counterbalance Western alliances.

The alliance will meet in October for its annual summit, where it is being reported that the developing countries may announce setting up a new currency.

Nigeria has applied to join BRICS and expressed interest in being a part of the organisation.

The trade between India and Nigeria comprise collaboration on energy, pharmaceuticals, and transport sectors.

In FY 2022–2023, trade between both nations amounted to $11.8 billion. In FY 2023–2024, the trade has reached $7.89 billion so far.

If BRICS countries continue to sign deals to not trade in dollars, the US economy, which is already in turmoil due to inflation and high debts, will further inch towards the risk of plummeting.